Thursday, December 03, 2015

NCC reduces MTN fine to US$3.4bn, Ikpoki, Goodluck resign

The Nigerian Communications Commission (NCC) has reduced the
N1.4 trillion to about N674 billion, just as key officers of MTN Nigeria have resigned with immediate effect, including the chief executive
officer, Mr. Michael Ikpoki and Corporate Services Executive, Mr. Akinwale
Goodluck.reports ITRealms.

MTN Group in a public statement made available to ITRealms
and endorsed by the Mr. Chris Maroleng, the mobile operator said said NCC
reduced imposed fine to US$3.4 billion equivalent, about N674 billion and
further cautions.

MTN Group also informed shareholders that, after further
engagements with the Nigerian authorities, the NCC has reduced the imposed fine.

MTN also said that it has received a formal letter dated 2
December 2015 from NCC informing the company that, after considering the
operator’s request, “it has taken the decision to reduce the fine on the MTN
Nigerian business from the original N1,040,000,000,000 (One Trillion, Forty
Billion Naira) to N674 Billion Naira which has to be paid by 31 December 2015.”

The fine, ITRealms gathered relates to the late
disconnecting of 5.1 million MTN Nigerian subscribers in August and September
2015.

The mobile operator, ITRealms gathered is carefully
considering the NCC’s reply, however the Executive Chairman Phuthuma Nhleko
will immediately and urgently re-engage with the Nigerian authorities before
responding formally, as it is essential for the group to follow due process to
ensure the best outcome for the company.

“Its stakeholders and the Nigerian authorities and
accordingly all factors having a bearing on the situation will be thoroughly
and carefully considered before the company arrives at a final decision,”
Nhleko said.

In a related MTN Nigeria’s CEO Michael Ikpoki and the head
of Regulatory and Corporate Affairs Akinwale Goodluck have tendered their
resignations with immediate effect.

They are replaced by Ferdi Moolman as MTN Nigeria CEO and
Amina Oyagbola as its head of Regulatory and Corporate Affairs. Mr Moolman was
previously COO at MTN Irancell and most recently CFO at MTN Nigeria.

A Nigerian national, Ms Oyagbola also retains the position
of MTN Nigeria’s Head of Human Resources. She formerly headed regulatory
affairs at the Nigerian operating company.

The search for the MTN Group CEO is underway and remains a
priority.

Commenting on the announcements, MTN Group Executive
Chairman Phuthuma Nhleko said: “This revised structure and strengthened leadership
will improve operational oversight and increase management capacity. This will
enable MTN to continue to realise its strategy and vision, while also ensuring
we achieve high governance standards and robust risk mitigation."

With the financial year closing on 31 December 2015, the MTN
Group will report its FY2015 results in line with the former structure – namely
for MTN Nigeria, MTN South Africa, Large Operating Companies and Small
Operating Companies.